SentimenTrader Says Extremes Are Now Starting To Register In The Gold Market

With continued uncertainty in both the gold and silver markets, SentimenTrader is saying that there are extremes starting to register in the gold market.

From Jason Goepfert at SentimenTrader: “Extremes are starting to register in gold. Most of our longer-term measures that focus on the metal itself are still a ways from showing pessimism (the gold Optimism Index is only 43, far from the low 20s from last year)…

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On a shorter- term basis, though, the GLD fund has had a persistently low Optimism Index (see excessive pessimism reading below).

Its 20-day average just fell below 30, which has led to good returns over the next 30 days (see chart below, which shows an average mean gain for the price of gold of 6.7% over 30 days).

King World News note: It is also worth noting that SentimenTrader has now lowered the risk for gold substantially to a 2 on a scale of 1-10 (see below).

King World News note: Capitulation is about as extreme as it can get at this point in the gold market. As John Embry pointed out the other day, even some long term gold holders have been throwing in the towel and selling their gold. From a contrarian perspective this is a very bullish sign for the medium- to long-term time frame.

The charts and commentary above are from SentimenTrader. To try a free 14-day trial of the internationally acclaimed work that Jason Goepfert produces at SentimenTrader simplyCLICK HERE.

***On the heels of the recent brutal multi-week smash in the gold and silver markets, KWN has now released the powerful audio interview with Egon von Greyerz and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.

***ALSO JUST RELEASED: Michael Oliver – Conspiracy Theorists Would Use This As Evidence Of Manipulation Of The Gold MarketCLCK HERE.